Business

Express Catering IPO oversubscribed

Friday, July 14, 2017

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Subscription for Express Catering Ltd's initial public offering (IPO), which opened Wednesday, was closed after a minute due to being oversubscribed.

The offer, which opened on July 12 at 9:00 am, saw the hospitality outfit seeking to raise $490 million from the purchase of 327,500,000 ordinary shares in the company. Indications are that Express Catering exceeded its target.

Lead financial adviser and broker for Express Catering Ltd, Mayberry Investments Ltd, yesterday told the Jamaica Observer that the basis of allotment will be released today in accordance with the Junior Market rules of the Jamaica Stock Exchange.

“The company has made application to list the shares on the Junior Market of the Jamaica Stock Exchange, but makes no guarantee that the shares will be so listed,” it added.

According to the Express Catering prospectus, the proceeds of the invitation will accrue to Margaritaville St Lucia Inc, the holding company of Express Catering Ltd, which intends to use the funds to increase the group's overall liquidity.

The proceeds will be used for the improvement and expansion of the Express Catering's operations, for working capital and general corporate purposes.

Express Catering is a Jamaican company that was formed in 2001 to carry out food and beverage operations at the Sangster International Airport in Montego Bay.

The company, run by Chief Executive Officer Ian Dear, operates a number of branded restaurant outlets under franchise or sub-franchise including Starbucks, Jimmy Buffett's Margaritaville, Quiznos, and Nathan's Hot Dogs.

— Karena Bennett

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